The stock price of global comprehensive distribution company Wellbiotech has been strong for two consecutive days. The news of successfully pioneering a supply chain for rare minerals in Africa appears to be influencing the stock price. With official approval from the Zimbabwean government, Wellbiotech will import spodumene (a raw ore containing high-purity lithium) into Korea at a maximum scale of 20,000 tons per month.
As of 9:30 a.m. on the 12th, Wellbiotech is trading at 3,330 KRW, up 19.78% from the previous day. After hitting the daily price limit the day before, it has surged for two consecutive days.
Wellbiotech announced the day before that it had received final approval from the Zimbabwean government for the export of lithium ore. This approval is the first exceptional permit granted to the Korean company Wellbiotech since the Zimbabwean government's 'Basic Mineral Export Restriction Act' at the end of 2022.
Wellbiotech conducted all processes confidentially over the past year to advance the project. CEO Gu Se-hyun of Wellbiotech completed a visit to Zimbabwe in mid-last month, successfully concluding the business. It took about a year to obtain approvals from relevant agencies, sign supply contracts with local mining companies, and receive final approval from the Zimbabwean government.
Wellbiotech will import 2,000 tons of high-content spodumene ore as the first batch. After the initial shipment, the import volume is expected to increase up to 20,000 tons per month. Transportation will be handled by Roadstar C&AIR, Wellbiotech’s logistics subsidiary.
CEO Gu Se-hyun of Wellbiotech explained, "Lithium, a core component of rechargeable batteries including electric vehicles, is called 'white petroleum.' Due to eco-friendly policies worldwide, demand is rapidly increasing, and it is predicted that demand will exceed supply until 2050." He added, "Being located in Korea, a global battery cell manufacturing hub, and connecting with Roadstar’s logistics network, Wellbiotech can leap forward as a top-tier rare mineral trading company."
He continued, "Since the detailed guidelines for the IRA (Inflation Reduction Act) in the U.S. were announced last April, most cathode material manufacturers have started building lithium refining facilities domestically for internalization. We will expand our rare mineral business starting with lithium by securing a stable supply of reliable high-purity lithium," he added.
Zimbabwe, the largest lithium producer in Africa, ranks sixth among global lithium-producing countries. It is estimated that if all recently discovered mines are fully exploited, Zimbabwe could supply 20% of the world’s lithium supply.
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